25/02/2010 (Bloomberg) - Palm oil futures pared earlier gains to trade little changed after the dollar rose against the euro on concern about Greece’s credit rating and exports from Malaysia declined.

Palm oil for May delivery on the Malaysia Derivatives Exchange in Kuala Lumpur traded at 2,591 ringgit ($760) a metric ton at the 12:30 p.m. local time break after earlier rising as much as 1 percent to 2,615 ringgit.

“Palm oil has put up a strong performance recently as investors have been focusing on the expectation for lower production in Malaysia and Indonesia in February and March, and neglecting the fact that Malaysia’s exports are on a decline,” Fan Sha, an analyst at Tianfu Futures Co., said from Hainan.

Malaysia’s palm oil exports fell 10.2 percent to 1,089,410 metric tons in the first 25 days of February, independent market surveyor Intertek said today. Production has fallen for three straight months, according to the Malaysian Palm Oil Board.

“The performance of the dollar and its impact on related commodities like soybeans will continue to affect palm oil,” said Fan. “Any gains in crude oil or soybean oil will support palm oil prices above 2,500 ringgit, however lower exports and a bumper soybean crop in South America will keep rallies in check.”

The dollar rose toward a nine-month high against the euro after Standard & Poor’s said it may cut Greece’s rating again by the end of March as a weak economy and political opposition threaten the nation’s ability to reduce the EU’s largest budget deficit.

Soybean oil in Chicago lost as much as 0.8 percent to 39.20 cents a pound today, after jumping 1.9 percent yesterday as U.S. farmers slowed sales, tightening available supplies, while crude oil was little changed after climbing above $80 a barrel.